Which of these statements is FALSE concerning credits and deductions?

-Refundable credits may reduce the taxpayer's tax liability below zero, and the difference is refunded to the taxpayer.

-Nonrefundable means that the combined amount of credits cannot reduce the taxpayer's tax liability below zero.

-Credits may be used to reduce taxable income.

-Deductions, lower the tax by reducing taxable income.

Answer rating: 100% (QA)

Nonrefundabe means that the combined amount of credits cannot reduce the taxpayers tax liability bel... View the full answer